Brokers are becoming increasingly concerned with regulation, according to the annual survey of mortgage intermediaries carried out by network, Bankhall.
The Points of You study found 62% of advisers believe compliance will be key to survival post-Mortgage Day, with just 38% expecting that securing the best commissions would be enough to allow them to continue.
Shaun Godfrey, sales director of Bankhall, said: ‘The fact that compliance is seen as a central business issue is borne out by the level of disagreement that finding the best deal for clients is the way to ensure survival. This highlights a realisation among intermediaries that a shift in emphasis is needed in light of an imminent increase in regulatory requirements. How intermediaries cope with this shift will be key to their survival. It will be a challenge for many, particularly small and medium-sized players, to juggle regulatory requirements with managing and building their client base.’
Regulatory concerns are already high on the agenda of many brokers as three-quarters ‘ said compliance costs were already high, and 87% thought costs would increase further over 2003 ‘ an increase of 11% on last year.
Furthermore, 97% expect the costs of compliance to increase under the Financial Services Authority, with 38% feeling under-prepared for statutory regulation.
Godfrey added: ‘With 38% of intermediaries saying they would like to be more prepared for new regulation, more work needs to be done in 2003.’